In the first half of 2024, developers delivered 1.64 million square meters of new warehouses, a 37% drop compared to the same period last year. Additionally, the amount of space under construction decreased to 2 million square meters, the lowest level in over three years. "Approximately 55% of this space is already secured by lease agreements," commented Szymon Sobiecki, Market Research Consultant at Knight Frank.
Strong Tenant Activity
Contrary to the limited supply, tenant activity showed a significant increase. In the first half of 2024, the demand for modern warehouse space reached 2.7 million square meters, representing a 23% growth year-on-year. "Poland remains an attractive country for investors due to its strategic location and competitive wage rates," adds Przemysław Jankowski, Head of Industrial and Warehouse Leasing at Knight Frank.
Transaction Structure
In the first half of the year, new lease agreements dominated, accounting for 54% of the total leased warehouse space. Renegotiations covered 39% of transactions, with expansions accounting for the remaining 7%. Despite higher demand, the vacancy rate at the end of June 2024 rose slightly to 8.3%, an increase of 0.1 percentage points from the previous quarter.
Stable Rents with Minor Changes
In the second quarter of 2024, asking rents in most regions remained stable. However, in Lower Silesia, a slight increase was noted. "The reduced number of new builds and fewer speculative projects will positively impact the balance between supply and demand in the coming quarters," predicts Szymon Sobiecki.
The limited new supply, coupled with the rising demand for warehouse space, suggests that the Polish warehouse market will maintain its stability in the coming months. This will be influenced by both limited new investments and stable rents.
